My customer is making payments toward their mechanics lien balance. He wants us to keep the lien in place when pd. It's my understanding that once the mechanics lien is paid, we are required to release the lien. Please advise how I should proceed. We're a material supplier in California.
No, you cannot keep your lien in place if you are paid and you should consider recording a partial release of the mechanics lien from time to time to reflect the true balance of the your lien claim. To knowingly keep your lien in place when the amount of the lien is not due at the request of your customer could subject you to a claim for unfair business practices or similar liability that you want no part of.
--CN